Corning and Samsung to Extend LCD Collaboration in China

Corning and Samsung to Extend LCD Collaboration in China

Corning (NYSE:GLW)Historical Stock Chart

5 Years : From Dec 2011 to Dec 2016

Corning Singapore Holdings Private Limited, a wholly owned subsidiary of Corning
Incorporated (NYSE: GLW), and Samsung Display Co., Ltd. have signed
a Memorandum of Understanding with the government of Wuxi New District,
China, intending to establish a new equity venture for the manufacture
of TFT-LCD glass substrates in China. Pending a final signed agreement
between Corning and Samsung Display, the new equity venture is expected
to be formed later this year, subject to receipt of regulatory approvals.

This newest venture will be an extension of a decades-long alliance
between Samsung and Corning, and will leverage Corning’s LCD glass
substrate technology and Samsung Display’s LCD display expertise. The
new entity will supply LCD glass substrates to Samsung Suzhou LCD Co.,
Ltd. in China.

Corning and Samsung Display will authorize the new company to spend up
to US$600 million to construct a new LCD glass substrate facility in the
People’s Republic of China. The new company will make the investment in
phases over the next few years as stages of the facility are constructed
and brought online. With the support of the Wuxi municipal government,
the new entity will be located in Wuxi New District, Wuxi City, Jiangsu
Province, in China. The manufacturing plant will have Gen 8 (2,200 x
2,500 mm) glass-melting and finishing capability. Construction of the
facility will start by the end of 2012, with production expected to
begin at the end of 2013, in time to meet demand for the start-up of
Samsung Suzhou LCD.

Although new LCD glass capacity is being built in China, Samsung Corning
Precision Materials Co., Ltd. (SCP), an equity venture of Samsung and
Corning, will be idling some of its LCD glass capacity in Korea. “As a
market leader in the LCD glass industry, Corning has built a highly
efficient worldwide supply network, which includes our equity venture
companies, to meet customers’ needs,” said James
P. Clappin, president of Corning Glass Technologies. “Shifting a
portion of SCP’s capacity in Korea to this new facility in China will
enable us to provide outstanding local supply in support of Samsung’s
new panel-making operations there,” Clappin added.

Market research firm DisplaySearch said more than 44 million LCD TVs
were shipped to retailers in China last year, and that the market should
increase to over 56 million units in 2014.

“China’s LCD TV end market represents more than 20% of the worldwide
total. Consequently, LCD panel manufacturers have been investing in
China-based production,” said Donggun Park, executive vice president of
Samsung Display and leader of the company’s LCD business. “Our new LCD
glass venture with Corning will help enable Samsung Display to succeed
in capturing a leading portion of this market through our new Samsung
Suzhou LCD entity in China,” Park said.

“Corning and Samsung have had a long and successful collaboration in the
display industry, dating back nearly 40 years to the early days of
television,” said Wendell
P. Weeks, Corning’s chairman, chief executive officer, and
president. “The strength and success of our ties are built on Corning’s
ability to develop and make high-technology glass with the key
attributes that support Samsung’s businesses. Together, we have led the
evolution of displays, from the high-growth years of CRT, to our current
successful business supplying world-leading substrates for today’s
high-definition LCD TVs, and now to the launch of this important new
venture in China,” Weeks said.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” (within the
meaning of the Private Securities Litigation Reform Act of 1995), which
are based on current expectations and assumptions about Corning’s
financial results and business operations, that involve substantial
risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include: the effect of global
political, economic and business conditions; conditions in the financial
and credit markets; currency fluctuations; tax rates; product demand and
industry capacity; competition; reliance on a concentrated customer
base; manufacturing efficiencies; cost reductions; availability of
critical components and materials; new product commercialization;
pricing fluctuations and changes in the mix of sales between premium and
non-premium products; new plant start-up or restructuring costs;
possible disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural disasters,
adverse weather conditions, or major health concerns; adequacy of
insurance; equity company activities; acquisition and divestiture
activities; the level of excess or obsolete inventory; the rate of
technology change; the ability to enforce patents; product and
components performance issues; retention of key personnel; stock price
fluctuations; and adverse litigation or regulatory developments. These
and other risk factors are detailed in Corning’s filings with the
Securities and Exchange Commission. Forward-looking statements speak
only as of the day that they are made, and Corning undertakes no
obligation to update them in light of new information or future events.

About Corning Incorporated

Corning Incorporated (www.corning.com)
is the world leader in specialty glass and ceramics. Drawing on more
than 160 years of materials science and process engineering knowledge,
Corning creates and makes keystone components that enable
high-technology systems for consumer electronics, mobile emissions
control, telecommunications and life sciences. Our products include
glass substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for telecommunications
networks; optical biosensors for drug discovery; and other advanced
optics and specialty glass solutions for a number of industries
including semiconductor, aerospace, defense, astronomy, and metrology.

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